First Business Financial Services, Inc. · NASDAQ:FBIZ
First Business Financial Services — Q1 2026 Earnings Presentation
45 slides from First Business Financial Services's earnings presentation, May 5, 2026
Slide 1: First Quarter 2026 Investor Presentation
NASDAQ: FBIZ Investor Presentation First Quarter 2026
Slide 2: Forward-looking statements
When used in this presentation, and in any other oral statements made with the approval of an authorized executive officer, the words or phrases “may,” “could,” “should,” “hope,” “might,” “believe,” “expect,” “plan,” “assume,” “intend,” “estimate,” “anticipate,” “project,” “likely,” or similar expre
Slide 3: Table of Contents
Table of Contents Page 4 5 6 11 22 29 Q1 2026 Results Company Snapshot Strategic Plan Why FBIZ? Drivers of Growth & Profitability Appendix
Slide 4: Highlights Q1 2026
Highlights Q1 2026 Tangible Book Value Per Share1 +14% YOY Fee Income +18% Non-interest income grew 17.6% from the linked quarter and 15.8% year-over-year, reflecting ongoing success of revenue diversification efforts. Core Deposits +18% Core deposits grew 18.4% from the linked quarter and 13.5% yea
Slide 5: Company Snapshot
First Business Bank’s unique model and culture will foster innovative and engaged team members who develop deep client relationships and deliver exceptional results for all stakeholders. We serve business executives, entrepreneurs, and high net worth individuals through Business Banking, Private Wea
Slide 6: Five Year Strategic Plan
FIVE YEAR (§ Strategic Plan
Slide 7: Five Year Strategic Plan 2024-2028
DEPOSITS OPERATIONAL EXCELLENCE PROFITABILITY FUTURE-READY TALENT CULTURE Protect and strengthen our culture Grow our core deposits Achieve sustainable profitability and growth Thrive in the workplace of the future Improve efficiency and enhance client experience Five Year Strategic Plan 01 02 03 04
Slide 8: Goals & Progress
Deliver above-average total shareholder return compared to peer median ROATCE and TBV/share are non-GAAP measurements. ROATCE is defined as net income divided by average tangible common equity. 1Q26 ROATCE represents annualized Q1 net income divided by average tangible common equity. TBV Growth repr
Slide 9: Total Shareholder Return Above Peer Group Median
Total Shareholder Return Above Peer Group Median Despite outperformance, Price/LTM EPS remains below peers Note: Peer Group defined as publicly traded banks with total assets between $1.75 billion and $7.0 billion. 1‐Year TSR is through 3/31/2026. Data as of 3/31/2026.
Slide 10: Total Shareholder Return Since IPO
FBIZ initiated trading on October 7, 2005. Source: S&P Capital IQ Total Shareholder Return Since IPO outperformed PRIMARY BANKING INDICES SINCE 2005 IPO 578% 181% 168% 129% 77%
Slide 11: Why FBIZ?
(§ Why FBIZ?
Slide 12: Our Historic & Ongoing Growth Supports Earnings Power
Our Historic & Ongoing Growth Supports Earnings Power Differentiated Loan Growth Capabilities History of consistent double-digit growth Growth is C&I focused and diversified Solid credit quality due to deep client relationships, strong underwriting, and niche lending expertise GROWING PROFITABILITY
Slide 13: Operating Income Highlights
Operating Income Highlights Continued strong revenue supported by: Robust loan and deposit growth Strong and stable net interest margin Diverse sources of non‐interest income, including service fees from our Private Wealth Management business which comprises 46% over the past 12 months ending Q1 202
Slide 14: Margin Strength Through Rate Cycles
Peer Group defined as publicly‐traded banks with total assets between $1.75 billion and $7.0 billion. Margin Strength Through Rate Cycles MATCH-FUNDING STRATEGY BETTER POSITIONS BALANCE SHEET FOR RATE CHANGES
Slide 15: Disciplined Interest Rate Risk Management
Disciplined Interest Rate Risk Management FLOATING RATE PORTFOLIO Floating portfolio is predominantly indexed to SOFR, which aligns with the Bank’s SOFR‐indexed and managed rate non‐maturity deposit portfolio. 60% of portfolio as of 12/31/25: METHODICAL APPROACH Typically individually match‐fund loa
Slide 16: Match Funded Balance Sheet Unique Among Peers
Match Funded Balance Sheet Unique Among Peers Note: Peer group defined as publicly‐traded bank with total assets between $1.75 billion and $7 billion.
Slide 17: Consistent, Positive Operating Leverage
Consistent, Positive Operating Leverage HISTORY OF GROWING REVENUES FASTER THAN EXPENSES We aim to achieve 10% revenue growth on an annual basis, with positive operating leverage1 Strategic initiatives directed toward revenue growth and operating efficiency through use of technology have generated p
Slide 18: Strong Business Banking Revenue Profile
Strong Business Banking Revenue Profile Fee income comprised 19% of operating revenue for 2025, outperforming peers As a business-only bank, we’ve achieved this outperformance without the revenue stream of a residential mortgage or consumer business Growing contribution from Private Wealth is an ann
Slide 19: Growth And Profitability Exceeds Peers
Growth And Profitability Exceeds Peers TLR GROWTH AND EFFICIENT CAPITAL MANAGEMENT DRIVES STRONG PROFITABILITY Note: Peer group defined as publicly traded banks with total assets between $1.75 billion and $7 billion. 1. 5-Year average represents 2020-2025. 5-Year Average1 FBIZ = 15.7% Peer = 12.9%
Slide 20: Track Record of Superior Growth
Track Record of Superior Growth 2025 EPS grew 14% over 2024, exceeding our long-term, annual goal of 10% earnings growth, even after following a robust year of 20% EPS growth in 2024 History of double-digit annual growth reflects long-term success in achieving: Steady and consistent balance sheet ex
Slide 21: Shareholder Value Creation
Shareholder Value Creation A HISTORY OF STEADY, CONSISTENT TBV AND DIVIDEND GROWTH THROUGH ECONOMIC AND INTEREST RATE CYCLES TBV 5YR CAGR = 12% Div/Share 5YR CAGR = 11% Announced a 17% dividend increase for 2026, marking 14th consecutive annual increase
Slide 22: Drivers of Growth & Profitability
Drivers of Growth & Profitability
Slide 23: Relationship Banking Key to Success
Relationship Banking Key to Success Deposit‐centric sales strategy led by treasury management sales teams located in all bank markets with direct production and outside calling goals Bankers trained and incented to fund their loan production with deposit growth goals Niche lending businesses provide
Slide 24: Diversified Lending Growth Continuing To Grow Higher-Yielding C&I
Diversified Lending Growth Continuing To Grow Higher-Yielding C&I PORTFOLIO 2023-2025 3-Year Loan CAGR C&I = 18% CRE & Other = 10% C&I comprised 67% of 1Q26 loan growth 1Q26 loan growth predominantly occurred late in the quarter, limiting the yield benefit in the first quarter.
Slide 25: Strong and Resilient Net Interest Margin
Strong and Resilient Net Interest Margin Wholesale funding defined as brokered CDs and non‐reciprocal interest‐bearing transaction accounts plus FHLB advances. Note: Peer group defined as publicly‐traded bank with total assets between $1.75 billion and $7 billion. Peer data not yet available for 1Q2
Slide 26: Superior Credit Experience Across Cycles
FBIZ’s average loss rate since 2005 is approximately one-third of industry rate *Industry reflects all FDIC-insured depositories Source: FDIC.gov Superior Credit Experience Across Cycles Deep client relationships, strong underwriting, and niche lending expertise Loan growth that is C&I focused and d
Slide 27: Performing Portfolio Remains Strong and Stable
Performing Portfolio Remains Strong and Stable RECENT AND FIVE-YEAR TRENDS REFLECT CONSISTENT STRENGTH OF PORTFOLIO 1. For more detailed definitions of credit quality categories, see the Company’s Annual Report on Form 10-K filed with the SEC on February 25, 2026. As of 3/31/26, 93% of the loan port
Slide 28: Decline in Non-Performing Assets
Decline in Non-Performing Assets PROGRESS ON SINGLE BORROWER NPA WITH STRONG COLLATERAL POSITION NPAs declined in 1Q26, driven by the sale of $3.4 million of land development loans, at par, from a single Wisconsin-based relationship that was downgraded in Q4 2025 The client’s remaining nonperforming
Slide 29: Appendix: Supplemental Data & Non-GAAP Reconciliations
Appendix SUPPLEMENTAL DATA & NON-GAAP RECONCILIATIONS
Slide 30: Offerings Designed Exclusively For Business And Wealth Management
Offerings Designed Exclusively For Business And Wealth Management SERVICES THAT MEET THE EVOLVING NEEDS OF OUR GROWING CLIENT BASE
Slide 31: Superior Client Satisfaction Rating
Superior Client Satisfaction Rating EXCELLENT EMPLOYEE SATISFACTION DRIVES SUPERIOR CLIENT SATISFACTION
Slide 32: Robust Liquidity with Stable Deposit Base
Robust Liquidity with Stable Deposit Base Stable Core Deposit Base Substantial Liquidity Source 3/31/2026 3/31/2025 Short-term investments $104,565 $136,033 Collateral value of unencumbered pledged loans 968,320 973,494 Market value of unencumbered securities 387,700 324,365 Readily accessible liqui
Slide 33: Robust Capital Base
Robust Capital Base Strong Capital Ratios +9% LQA +14% YOY STRONG EARNINGS GENERATE CAPITAL FOR GROWTH 1. “Tangible Book Value Per Share" is a non‐GAAP measurement. Refer to section entitled Non-GAAP Reconciliations in the Company’s Q1 26 earnings release.
Slide 34: Capital Strength
Capital Strength 3/31/25 6/30/25 9/30/25 12/31/25 03/31/26 Total Regulatory Capital $429,351 $440,159 $452,731 $463,447 $473,237 Total Risk-Weighted Assets $3,519,769 $3,592,554 $3,717,741 $3,786,460 $3,895,564 Leverage Ratio 8.77% 8.82% 8.87% 8.86% 8.93% Common Equity Tier 1 Capital Ratio 9.26% 9.3
Slide 35: Diversified Lending Products
Diversified Lending Products Double-digit loan growth driven by stellar performance across all areas of the bank Note: Period end balances as of 3/31/2026 presented.
Slide 36: Commercial Real Estate Lending
Product Profile We originate loans secured by commercial real estate, including owner-occupied properties, non-owner-occupied facilities, multifamily developments, 1-4 family residential developments, and construction loans for these types of buildings. As of 3/31/26, our commercial real estate port
Slide 37: CRE Office Portfolio Analysis
Office loans focused in our bank markets and concentrated in Wisconsin Exceptional asset quality with no non-performing office loans in the portfolio 77% of all office loans greater than $3 million have recourse Office loans greater than $3 million consist of 64% Class A space Office represents 9% o
Slide 38: Multi-Family Portfolio Analysis
Loans focused in our bank markets and concentrated in Wisconsin Exceptional asset quality with 99.3% performing loans in the portfolio Represents 16% of total loans All multi-family loans with 2031+ maturities are conventional fixed rate or fixed to the client via an interest rate swap Source: Q4 20
Slide 39: C&I Lending
Product Profile Target small and medium companies in a variety of industries Financings range from $250,000 to $20 million Technology Initiatives Deploying client portal that enables easy and secure communications and document exchanges Note: Loan balances represent quarterly average data. C&I Lendi
Slide 40: Equipment Finance Portfolio Analysis
Equipment Finance Portfolio Analysis Equipment Finance (EF) loans diversified across industries EF comprised 24% of C&I loans and 9% of Total Loans at 3/31/2026 Small ticket transportation loans comprised 5.5% of EF, 1.3% of C&I, and 0.5% of Total Loans Stable asset quality in EF portfolio excluding
Slide 41: Treasury Management and Deposits Product Profile
Product Profile Target small to medium-sized companies in our Wisconsin, Kansas, and Missouri markets Comprehensive services for commercial clients to manage their cash and liquidity, including lockbox, accounts receivable collection services, electronic payment solutions, fraud protection, informat
Slide 42: Private Wealth Management
Product Profile Fiduciary and investment manager for individual and corporate clients, creating and executing asset allocation strategies tailored to each client’s unique situation Holds full fiduciary powers and offers trust, estate, financial planning, and investment services, acting in a trustee
Slide 43: Net Operating Income reconciliation
"Net Operating Income" is a non-GAAP financial measure. We believe net operating income allows investors to better assess the Company’s operating expenses in relation to its top line revenue by removing the volatility that is associated with certain one-time and other discrete items. In compliance w
Slide 44: Cost of Funds reconciliation
‘‘Cost of Funds’’ is defined as total interest expense on deposits and FHLB advances, divided by the sum of total average deposits and average FHLB advances. We believe that this measure is important to many investors in the marketplace who are interested in the trends in our bank funding costs. The
Slide 45: First Quarter 2026
Investor Presentation First Quarter 2026
First Business Financial Services — Q1 2026 Earnings Presentation on 6ix